RVPI in Private Equity: Formula, Example and What Is Good

Of the three multiples used to judge a private equity fund, RVPI is the one built entirely on estimates. It measures the value a fund still holds but has not yet sold, using the manager's own valuation of those holdings. That makes it the softest of the three, and the one that most needs reading in context. The formula, a worked example, a calculator and the honest way to read a high RVPI are all below.

What is RVPI in private equity?

RVPI, or residual value to paid-in, is the current value of everything a fund still holds divided by the capital investors have paid in. It measures unrealized value only, the paper value still inside the fund. An RVPI of 0.8x means 80 cents of unrealized value remains for every dollar an investor put in.

RVPI is the mirror image of DPI. DPI is the cash already returned; RVPI is the value still to come. Add the two together and you get TVPI, the total value multiple. Because RVPI rests on the fund's own valuation of holdings it has not sold, it is the number to treat with the most care.

The RVPI formula

RVPI divides the fund's current net asset value by the capital investors have paid in.

The residual value in the numerator is a fair-value estimate, set by the manager's periodic valuation of the portfolio (Invest Europe). That is the key thing to remember about RVPI: unlike DPI, which is hard cash, RVPI is an opinion about what the holdings are worth today.

Calculate RVPI, DPI and TVPI

Enter a fund's paid-in capital, its current NAV, and its cumulative distributions. The calculator returns RVPI along with DPI and TVPI, and shows how the three fit together.

A worked example

Take a fund an investor has paid $100M into. Its remaining holdings are currently valued at $90M, and it has distributed $30M in cash so far.

RVPI = 90 / 100 = 0.90x. You can also get there from the identity: RVPI = TVPI - DPI = 1.20x - 0.30x = 0.90x. This fund still holds 0.90x of unrealized value for every dollar paid in, three times the 0.30x it has actually returned as cash. Most of its total value is still on paper.

How to read RVPI

Above 1.0x, the fund's remaining holdings are worth more than the total capital paid in. At 1.0x, they equal it. Below 1.0x, they are worth less. But the level on its own says little. A 0.8x RVPI could be a young fund holding almost everything it bought, or a mature fund that has already distributed most of its value. Only the fund's age tells you which.

Why RVPI rises and then falls

RVPI follows an arc: it starts at zero, rises as the fund invests and marks up its holdings, then falls back toward zero as those holdings are sold. This is the opposite shape to DPI, which climbs steadily, and it is worth understanding because it is what makes a high RVPI mean different things at different times.

In the early years, the fund is calling capital and buying companies, and their value builds up as unrealized NAV, so RVPI is the largest part of TVPI. Around the end of the investment period, RVPI usually peaks. Then, as the fund exits its holdings in the harvesting years, each sale converts unrealized value into cash: RVPI falls and DPI rises in step, while TVPI stays roughly level. By wind-up, everything has been sold and distributed, RVPI reaches zero, and TVPI equals DPI (Carta).

What is a good RVPI?

There is no benchmark RVPI. A good number depends entirely on the fund's age, and it is only meaningful read against DPI. A young fund still deploying capital is expected to have a high RVPI, because little has been realized yet. A mature fund near the end of its life should have an RVPI close to zero, because it should have sold and distributed its holdings.

This is why a high RVPI is ambiguous. Early on, it is normal and healthy. Late in a fund's life, a stubbornly high RVPI can be a warning sign: it may mean the manager is struggling to exit investments and return capital, or that the holdings carry optimistic marks that have not been tested by a sale. That interpretation is judgement, not proof, so it is always read alongside DPI and the fund's age (Carta).

The current market makes the point. With exit markets slow, distributions have fallen to some of their lowest levels in over a decade, so a lot of value is sitting unrealized: for the year to June 2025, private equity distributed only about 6% of its total assets, against a 2015 to 2019 average near 16% (McKinsey). In other words, RVPI is running high across recent vintages not because the funds are exceptional, but because the cash has not come out yet. That is exactly the situation where RVPI needs reading against DPI, not on its own.

RVPI vs DPI vs TVPI

RVPI, DPI and TVPI are three views of one fund. RVPI is the value still held, DPI is the cash already returned, and TVPI is the two added together.

Read RVPI as the share of the multiple that is still a valuation rather than money. A 1.8x TVPI built from 1.4x DPI and 0.4x RVPI has mostly been paid out. A 1.8x TVPI built from 0.3x DPI and 1.5x RVPI depends almost entirely on marks that no sale has yet tested. The headline is the same; the risk is not.

How Asora tracks RVPI

RVPI is only as good as the valuation behind it, and that valuation changes every reporting period. Each time a fund issues a new NAV, RVPI moves, and keeping that current across many funds, in several currencies, is a constant chore in a spreadsheet.

In Asora, a new valuation moves RVPI the moment it posts. The platform holds the latest net asset value behind every commitment and sets each distribution against it, so the unrealized share of every fund's return sits next to the realized share, across the whole private-markets book, on one reporting layer rather than in a spreadsheet that lags the marks by a quarter.

Sources

• Invest Europe, Investor Reporting Guidelines: the RVPI definition (current fair value of assets to paid-in), the identity TVPI = DPI + RVPI, net-of-fees reporting, and the decline to zero at wind-up.
• Carta, RVPI Explained: the formula, the rise-then-fall life cycle, and how to interpret a high RVPI.
• Allen Latta, LP Corner: Fund Performance Metrics: RVPI = TVPI - DPI and the fair-value variability of residual value.
• McKinsey, Global Private Markets Report 2026: the recent slowdown in distributions that keeps unrealized value, and RVPI, elevated.

FAQ

What does RVPI stand for in private equity?

RVPI stands for residual value to paid-in. It is the current value of everything a fund still holds, its residual NAV, divided by the capital investors have paid in. It measures unrealized value only, the paper value still inside the fund. An RVPI of 0.8x means 80 cents of unrealized value remains for every dollar an investor contributed.

What is the RVPI formula?

RVPI = residual NAV / paid-in capital. The numerator is the fund's net asset value, the current fair value of all the holdings it has not yet sold. The denominator is the capital investors have paid in through capital calls. It is the same as TVPI minus DPI, and it is reported net of fees and carried interest. The result is a multiple, such as 0.8x.

Is RVPI realized or unrealized?

Unrealized. RVPI counts only the value still sitting inside the fund, based on the manager's current valuation of the holdings. It is the opposite of DPI, which counts only realized cash already distributed. Because RVPI rests on fair-value estimates, it is the softer of the two and can move up or down as valuations change.

Does RVPI equal TVPI minus DPI?

Yes. The three metrics are linked by one identity: TVPI = DPI + RVPI, so RVPI = TVPI - DPI. DPI is the realized cash, RVPI is the unrealized value, and TVPI is the two added together. As a fund sells its holdings, value moves from RVPI into DPI while TVPI stays roughly level.

What is a good RVPI?

There is no benchmark RVPI, because a good number depends entirely on the fund's age. A young fund still investing is expected to have a high RVPI, since little has been realized. A mature fund near the end of its life should have an RVPI close to zero. A high RVPI late in life can be a warning sign of slow exits or optimistic marks, so it is always read against DPI and the fund's age.

Why does RVPI fall late in a fund's life?

Because RVPI measures value still held, and late in life the fund is selling its holdings and paying out the proceeds. Each exit converts unrealized value into cash, so value moves from RVPI into DPI. By the time the fund winds up and has sold everything, RVPI reaches zero and TVPI equals DPI.

Can RVPI go up and down?

Yes. Unlike DPI, which only rises, RVPI is not one-directional. It is based on the fund's net asset value, a fair-value estimate that changes every reporting period as holdings are marked up or down. So RVPI rises when the portfolio appreciates and falls both when holdings are marked down and as they are sold and distributed.

What is the difference between RVPI and DPI?

RVPI measures unrealized value still held in the fund; DPI measures realized cash already returned. Together they make up TVPI. RVPI is a valuation estimate that rises and falls, while DPI is hard cash that only rises. Reading them together tells you how much of a fund's total value is real money in hand versus paper value still to be realized.